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EBRD Small Business Support Building stronger businesses. EBRD Small. Private sector development through a multi-tier approach. Business know how in addition to financing. EBRD’s Small Business Support (SBS) team has been helping SMEs since 1993
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EBRD Small Business Support Building stronger businesses EBRD Small
Business know how in addition to financing EBRD’s Small Business Support (SBS) team has been helping SMEs since 1993 SBS promotes good management in small businesses in the EBRD region, by providing direct assistance to individual enterprises, helping them to grow their businesses and become more competitive SBS works on a not-for-profit basis, with two instruments: the Enterprise Growth Programme (EGP) and Business Advisory Services (BAS) Market and sector development activities strengthen the local consultancy markets and disseminate sector best practices SBS at a glance Over €200m donor funding 1,800+ EGP projects 12,500+ BAS projects Nearly 800 market development activities Active in 25 countries
EGP supports the introduction of international best practice on a cost sharing basis • SMEs with the potential of becoming future leaders in their market • International advisors with at least 15 years of professional experience and expertise in the specific business sector • Time horizon:12 – 18 months • BAS assists individual enterprises to engage with local consultants on a cost sharing basis • Specific projects with a rapid payback • Aimed to increase the supply and quality of local advisory services • Time horizon: 4 – 6 months • Targeted market development activities to create a sustainable market of support for the SME sector • EGP Brings International Know How BAS Fosters Local Expertise
SBS combines international industry best practice with high quality local advisory services in diverse management areas to support the specific needs of local companies Operations Sustainability Pricing and Channel Management Operations Procurement Organisation Technology Sustainability Branding Strategic Planning Marketing Transformation and Change Risk Management Corporate Governance Organisational Design Human Capital Energy Audit Green Operations Water and Waste Clean Technologies Energy Efficiency Innovation Strategy Strategy HACCP Product Development ISO 9000 - 27000 Supply Chain Organisation Enterprise Architecture IT Strategy & Organisation Computerised Manufacturing Automation Technology MIS In search of a perfect crust: EGP team of experts are helping a Bosnian bakery to develop new products, improve quality and launch new equipment. CEO assessment “we have inspiration and workload enough for the coming two years”.
A strong local presence in the Western Balkans Russia Croatia Serbia BiH Montenegro Kosovo Albania FYR Macedonia Extensive experience supporting over 4000 MSMEs in the Western Balkans A deep local market knowledge based on 16 years of business presence Local teams (over 30 specialists) across EBRD Resident Offices in the 7 countries A network of over 600 local consultants across all business advisory segments and 1200 international industry experts Established partnerships with local institutions and stakeholders A support infrastructure, both in the field and at the EBRD headquarters in London
A strong track record in delivering results and high impact projects Active since 1996, BAS has implemented 3514 projects and EGP 512 projects in the Western Balkans Utilised €55m of funding from bilaterals and the EU, matched with more than €16m in client contributions 72% of clients increased turnover, on average by 20%, as they expanded their business SBS clients experience on average an increase of number of employees of 20% and a 30% increase in productivity 50% of clients experienced an increase in their workforce, contributing to the creation of 9,000+ jobs 20% of clients secured external finance for more than €800m 78% made repeat use of consultants at market cost to improve competitiveness and performance
SBS helps its clients in both pre and post investment stages to make companies creditworthy and suitable for further investment SBS clients in the Western Balkans received a total of €370 million of EBRD investments, both in debt and equity SBS clients often obtain non-EBRD financing, such as through local commercial banks. In 2012, 15% of SBS enterprises received non-EBRD investments with a total value of €84 million SBS closely cooperates with the EBRD LEF, for instance through improving financial reporting and accounting standards Both a BAS and EGP client, a beverage manufacturer in Skopje received € 1 million from Stopanska Banka, and € 2 million from Komercijalna Banka
EBRD financing options for MSMEs • Indirectly: via local partner financial intermediaries FIs and through many FI MSME dedicated facilities, deployed across all countries. In Western Balkans FI partners include Banka Intesa, UniCredit, Societe General, Rheiffeisen, Opportunity Banka, Erste Banka etc. • Semi-indirectly: via co-financing mechanisms (e.g., the Medium-sized Co-Financing Facility (MCFF), available in ETCs • Directly: through several facilities created mostly in the context of the strategic ETC and WB Initiatives for direct “tailor-made” financing: In the Western Balkans EBRD operates the Local Enterprise Facility (LEF) and the WB SE Direct Financing Facility (WeBSEDFF)
The Local Enterprise Facility (LEF) was established in 2006 jointly by the EBRD and the Italian Government. • A delegated facility for equity, quasi-equity investments and tailor-made debt financing. • Investments between € 1 – 10 million • As of December 2012, LEF has invested € 245 million in 54 SMEs in 11 countries. • Key objectives: • Competitiveness • Restructuring • Corporate Governance Supporting financing needs of dynamic local enterprises
SME Financing Provided Through Credit Lines to Local Banks • Improve access to longer term finance for private enterprises for urgent capital investments, as well as working capital; • Facilitate upgrades of SME operations towards EU production standards; • Enterprises directly apply at the EBRD partner banks for these credit lines • Loan conditions in line with market conditions Who we work with in Western Balkans BancaIntesa Komercijalna Banka (Serbia) SocieteGenerale Hipotekarna Banka (Montenegro) Unicredit Bank Privredna Banka Zagreb Alpha Bank Serbia Erste Bank Etc.
SBS helps companies to grow and find the best investment options • BAS and EGP build up managerial capacity, raise corporate governance standards, support MSMEs in developing and adapting their strategy; • BAS Accounting Improvement Initiative supports introduction of IFRS and raising standards of financial management; • SBS develops local consultants’ capacity through targeted trainings • Business Matching Trips bring MSMEs in touch with partners and potential investors • Initiatives such as Women in Business target audiences with specific needs